What is stub period investopedia?

What is stub period investopedia?

From Wikipedia, the free encyclopedia. In finance, in particular with reference to bonds and swaps, a stub period is a length of time over which interest accrues are not equal to the usual interval between bond coupons.

What does stub mean in finance?

In finance, a stub is a security that is created as a result of a corporate restructuring such as a spin-off, bankruptcy, or recapitalization in which a portion of a company’s equity is separated from the parent company’s stock. Stub stocks may also be created by converting a distressed company’s bonds into equity.

What is stub period in valuation?

The period between the valuation date/transaction date and the beginning of the financial year is called a stub period. It is usually a fraction of a year or quarter. The stub period arises because valuations can be done throughout the year and not just at the end of a period.

What is a stub period adjustment?

Stub Period Adjustment means the amount, whether positive or negative, resulting from the combination of (a) the amount of additions, contributions and reinvestments (or notices thereof) to accounts (other than ETFs) starting on the date immediately after the relevant Closing Measurement Valuation Date therefor and …

What is stub in IRS?

When the asset has a recurring payment schedule, but the first or last period is shorter because it was traded mid-payment, this short period is known as the stub.

What is a stub period dividend?

Stub Dividend means the prorated quarterly dividend to be paid in respect of the period beginning on the first calendar day of the fiscal quarter in which the Closing occurs and ending on (and including) the Closing Date; provided, that the amount of such prorated quarterly dividend is consistent (taking into account …

What is the purpose of a pay stub?

As the employer, a pay stub is useful for tax purposes, and it can be used to resolve any discrepancies with employee pay. For your employee, it provides a record of their wages, helps them understand their taxes, contributions, and deductions, and allows them to ensure they were paid correctly.

How do you use stub period in DCF?

What’s the point of a “stub period” in a DCF? Can you give an example? β€” To account for these 3 months, use 0.25 for the discount period, and then use 1.25 for the discount period for the first full year of the model, 2.25 for the next year and so on. You just studied 5 terms!

What does stub interest mean?

Related Definitions Stub Interest Period means the period commencing on the Closing Date and ending on (but not including) the first calendar day of the first month following the Closing Date (or if such day is not a Business Day, the next Business Day thereafter).

What is Stub Risk?

The risk that arises because of the duration of the floating leg of a swap. This occurs because once LIBOR is set, it becomes a 3-month (or 6-month) fixed rate. The stub risk is usually managed on a standalone basis as can be significant when LIBOR is volatile.

What does stub equity mean?

Stub equity gives shareholders the option of retaining a stake in the target business by swapping their shares in the target for shares in the bid vehicle, rather than cashing out.

What is stub of a table?

THE TABLE STUB. The stub consists of a heading and the line captions that are listed at the left side of a table and describe each row of figures in the field. Capitalize only the first letter of the first word and the first letters of any proper nouns in both the stub heading and the line captions.

What is the sign of a period?

Knowing your cycle AND the signs your body gives – obvious as well as subtle – is period wise. bloating. food cravings. nausea. increased appetite. constipation or diarrhea. light crampiness. nausea.

What is the past tense of stub?

The past tense of stub is stubbed. The third-person singular simple present indicative form of stub is stubs.

What is included on a pay stub?

A paycheck stub is the portion of a paper paycheck that the employee keeps after cashing their payroll check. Information typically included on the paycheck stub includes the number of hours worked, the amount paid to the employee, a breakdown of taxes paid and a list of various deductions.

What is a method stub?

A method stub or simply stub in software development is a piece of code used to stand in for some other programming functionality. A stub may simulate the behavior of existing code (such as a procedure on a remote machine, such methods are often called mocks) or be a temporary substitute for yet-to-be-developed code.